Refinancing that introduces a 'bullet' repayment element to the debt will require the private party to repay creditors a lump sum on a specified future date. It is conceivable that the funds to be repaid via the bullet repayment may exceed the available cash held by the private party at the time, providing an incentive to attempt to refinance prior to the bullet payment due date.
If the private party cannot refinance prior to the bullet payment date, it risks insolvency and default, giving the government party a right to step in and assume responsibility for the project (and associated risks). The lenders may also decide to step in to resolve issues or refinance the debt and assume responsibility in order to avoid risking a debt default. If the private party is able to refinance in time, the risk exists that the refinanced debt terms may be worse, constituting a refinancing loss.